Scrapping Scheme Programme for Old Vehicles
Category: Legislative
Document Type: Programme
Role: Supporting Legislation
Turkey's 2018-2019 Vehicle Scrapping Scheme Offered Tax Exemptions for Older Cars.
To address the aging national vehicle fleet, the Turkish government implemented a vehicle scrapping scheme in 2018, as detailed in the Official Gazette (2018). The program was active from June 2018 until the end of 2019. Under this scheme, customers who scrapped a vehicle that was 16 years or older were eligible for tax exemptions when purchasing a new vehicle. The exemption amount was capped at 10,000 TL and was dependent on the ÖTV (Vehicle Registration Tax) category and the price of the new car being purchased. The primary purpose was to incentivize consumers to replace older vehicles with newer ones. Affected sectors included the automotive industry (manufacturers, dealerships) and vehicle owners/consumers.
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Full text:
WHITE PAPER APRIL 2019 PASSENGER CAR EMISSIONS IN TURKEY A BASELINE ANALYSIS OF CURRENT VEHICLE TAXATION POLICIES IN TURKEY AND THEIR IMPACT ON NEW AND USED PASSENGER CARS Murat Şenzeybek and Peter Mock www.theicct.org communications@theicct.org BEIJING | BERLIN | BRUSSELS | SAN FRANCISCO | WASHINGTON ACKNOWLEDGMENTS The authors would like to thank all internal and external reviewers of this report for their guidance and constructive comments, with special thanks to the Turkish Automotive Distributers’ Association (ODD), the Turkish Automotive Manufacturers’ Association (OSD), Sonsoles Díaz, John German, Joshua Miller, Sandra Wappelhorst, and Zifei Yang (all ICCT). For additional information: International Council on Clean Transportation Europe Neue Promenade 6, 10178 Berlin +49 (30) 847129-102 communications@theicct.org | www.theicct.org | @TheICCT © 2019 International Council on Clean Transportation Funding for this work was generously provided by the Istanbul Policy Center - Sabancı University - Stiftung Mercator Initiative. EXECUTIVE SUMMARY The Turkish automotive industry is the fifth largest in Europe and critical to Turkey’s economic stability. Passenger car taxes in Turkey are higher than in almost all of Europe. The largest portion comes from the vehicle registration tax (ÖTV), which is tied to engine size, or displacement. The tax nearly doubles for engine displacement above 1,600 cm3 and triples for engine displacement above 2,000 cm3. As a result, consumers overwhelmingly purchase new cars with smaller engines. Ninety percent of vehicles on the road have an engine displacement below 1,600 cm3 and almost no vehicles have an engine displacement above 2,000 cm3 (Figure ES-1). 1000 750 500 250 0 1985 1990 1995 2000 2005 2010 2015 Model year i )sdnasuoht ni( daor eht no srac regnessaP Engine displacement (in cm3)
Tags: Mitigation, Transport, Tax, Tax Incentives, Incentive, Regulation, Policy, Deadline
Sector: Transport;Finance